China's Real Estate Trust Business Development Discussed

With the further development of housing system reform in city andtown, the step of housing construction becomes fast. The consuming ismotivated efficiently. The condition of people's housing is improved.Taking the housing as the dominant factor, real estate has become thepillar industry of national economy. Real estate market plays an importantrole in accelerating the economic growth and promoting the livingstandard of people. As a pillar industry, real estate needs stable, healthy and sustaindevelopment. The loan is a key factor for the real estate business.However, a document, Further Strengthening the Management of CreditBusiness of Real Estate (NO.121), was issued on 2003 June. It imposedrestrictions on real estate credit and made the capital in enterprise tight.The enterprises had to seek for other ways of finance. To a certain extent,real estate trust can solve the problem of capital for the enterprises. The Trust company in China has experienced five reorganization andone law and two regulations. It takes exclusive trust as the foothold todevelop. Trust is a kind of banking institute involving monetary market,capital market and industrial market simultaneously. It is possible fornumerous investors to enter into the real estate business directly. In recent years, REIT (real estate investment trust) in overseassecurity market has been developed fast. REIT is listed in Exchange. It isan investment and trust company, which specialized in real estatebusiness. REIT provides not only the financial channels outside the bankfor the development of real estate business, but also investment productswith stable income and low risk for the investors. REIT originates fromUS and develops up to now. There are more than 190 companies listed init. The total market value is up to more than $300 billion. That is thereason why I choose the development of real estate business as thecontent of my paper. With the analysis of REIT, we can draw on theexperience of it to promote our trust business of real estate. Now, domestic introduction and analysis on trust business of realestate and REIT are from safety, profit and mobility. They seldom use thepeculiarity of trust to distinguish between them. The article not onlyanalyzes on safety, profit and mobility of them, but also makescomparison on the form of trust and impetus between them. Moreover,many articles on trust business of real estate mainly consider on solvingthe finance of enterprises. They do not emphasize trust is a system ofadministration of assets. In the article, trust company develop trustbusiness of real estate is foothold; the unique superiority of trust to bringforth new ideas for business is key point. They relate real estate enterpriseto investors closely. There are four parts in the article. The first part is the illustration oftrust feature of real estate business. The second is the analysis on ourcurrent trust business of real estate. The safety, profit and mobility of ourtrust business of real estate should be improved. Meanwhile, the principleof conduit cannot be realized. Independence of property and theadvantage of reconstructuring function authority are not brought into playperfectly. The third is a conclusion of the development of American REIT.REIT has a long history in US. It has perfect environment of policy andlaw. The organizational form of REIT and the policy of real estateinvestment form are changing continuously. Nevertheless, the preferentialtax policy that REIT enjoys is the same as before. The last compares ourtrust business of real estate with American REIT. It inquires into thinkingof the development of our trust business. We contrast the propagandaemphasis with the impetus on business and the features of trust. We learnthe propaganda emphasis that lies in the independence of property andreconstructuring function authority. The business is sensitive to thechange of policy. In view of that, we will make full use of the independence ofproperty, reconstructuring function authority and creativity. On the otherhand, taking the preferen...